The company is leasing two buildings in the 6000 block of Dumbarton Circle, which is roughly two miles from the Dumbarton Bridge. The move could bring up to 1,000 new jobs to the area, but that could also mean 1,000 more cars on already congested roads.

The two properties on Dumbarton Circle are about 11 miles from the Tesla factory off Interstate 880 in Fremont and about 20 miles from Tesla's Palo Alto headquarters.

John Goodwin with the Metropolitan Transportation Commission believes the root of the issue is a serious imbalance in jobs being located in areas where there is little affordable housing. The issue translates into longer commutes for drivers.

But Goodwin said if the city is looking ahead a few years, they could do a lot to smooth out future traffic concerns. Example of what could improve traffic conditions are signal light synchronizations and improved roads. There is already plans to convert parts of Highway 84 into express lanes and to encourage more carpool use.

In an e-mail to NBC Bay Area, the City of Fremont boasts about the new location and said "it's a reverse commute from the Peninsula." Read the full statement below. (Note references to Ardenwood indicate an area within Fremont)

Tesla can't be underestimated in terms of its importance to Fremont, the region, and the state. It's the largest manufacturer in California.

The ecosystem that supports Tesla through the supply chain is right here in Fremont and the rest of the region. The supply chain also has a broader reach and is being utilized by companies moving to our area.

The resurgence of manufacturing both here and across the United States, fueled by more advanced manufacturing processes, is very well represented by Tesla.

Ardenwood is perfectly positioned between the Peninsula and the greater East Bay talent pool. Not only does it sit in the right place, it takes advantage of open space amenities such as the Bay Trail and Coyote Hills Regional Park. We’ve seen a lot of new companies moving to Ardenwood such as EFI, Sportsvision, TE Connectivity, Boehringer Ingelheim, Asterias Biotherapeutics, Soraa, Ardelyx, and NEXTracker.

Another attraction for Ardenwood is it's a reverse commute from the Peninsula. Ardenwood provides a 7-minute ride across the Dumbarton Bridge and connects Fremont with its neighboring cities of Menlo Park and Palo Alto. For East Bay commuters, Ardenwood provides the opportunity to work closer to home.